FINANCE 301 Exam Rated A+ | Questions all with
100% Correct Answers
Little Sandwich Inc. recently reported $6 million of net income. Its EBIT was $12 million,
and its tax rate was 40 percent. What was its interest expense? - ANSWER 2,000,000
EBIT = 12
Interest = 2
EBT = 10
Tax (40%) = 4
Net Income (60%) = 6
Jackson Brothers recently reported an EBITDA of $15 million and net income of $4.5
million. It had $3.0 million of interest expense, and its corporate tax rate was 40
percent. What was its charge for depreciation and amortization? - ANSWER 4,500,000
Kendall Corners Inc. recently reported net income of $2.5 million and depreciation of
$700,000. What was its net cash flow? Assume it had no amortization expense. -
ANSWER 3,200,000
NCF formula = 2,500,,000
In its most recent financial statements, NewCar Inc. reported $40 million of net
income and $585 million of retained earnings. The previous retained earning were
$560 million. How much dividends were paid to shareholders during the year? -
ANSWER 15,000,000
, Beginning RE
+ NI
- Div
Ending RE
Gaming World Inc. paid out $16.8 million in total common dividends and reported
$391.4 million of retained earnings at year-end. The prior year's retained earnings
were $346 million. What was the net income? - ANSWER 62,200,000
Beginning RE 346
+ NI +62.2
- Div -16.8
Ending RE 391.4
W.C. Cycling had $160,000 in cash at year-end 2004 and $125,000 in cash at year-end
2005. Cash flow from long-term investing activities totaled negative $420,000, and cash
flow
from financing activities totaled $300,000.
What was the cash flow from operating activities? - ANSWER 85,000
Begin CF 160,000
Operating + OCF
Financing +300,000
Investing -420000
End CF 125,000
100% Correct Answers
Little Sandwich Inc. recently reported $6 million of net income. Its EBIT was $12 million,
and its tax rate was 40 percent. What was its interest expense? - ANSWER 2,000,000
EBIT = 12
Interest = 2
EBT = 10
Tax (40%) = 4
Net Income (60%) = 6
Jackson Brothers recently reported an EBITDA of $15 million and net income of $4.5
million. It had $3.0 million of interest expense, and its corporate tax rate was 40
percent. What was its charge for depreciation and amortization? - ANSWER 4,500,000
Kendall Corners Inc. recently reported net income of $2.5 million and depreciation of
$700,000. What was its net cash flow? Assume it had no amortization expense. -
ANSWER 3,200,000
NCF formula = 2,500,,000
In its most recent financial statements, NewCar Inc. reported $40 million of net
income and $585 million of retained earnings. The previous retained earning were
$560 million. How much dividends were paid to shareholders during the year? -
ANSWER 15,000,000
, Beginning RE
+ NI
- Div
Ending RE
Gaming World Inc. paid out $16.8 million in total common dividends and reported
$391.4 million of retained earnings at year-end. The prior year's retained earnings
were $346 million. What was the net income? - ANSWER 62,200,000
Beginning RE 346
+ NI +62.2
- Div -16.8
Ending RE 391.4
W.C. Cycling had $160,000 in cash at year-end 2004 and $125,000 in cash at year-end
2005. Cash flow from long-term investing activities totaled negative $420,000, and cash
flow
from financing activities totaled $300,000.
What was the cash flow from operating activities? - ANSWER 85,000
Begin CF 160,000
Operating + OCF
Financing +300,000
Investing -420000
End CF 125,000
